UPDATE 1-Sharp to start shipping iPhone screens to Apple this month

TOKYO, Aug 2 (Reuters) - Japan's Sharp Corp. willstart shipping screens destined for a new Apple iPhone that iswidely expected to be released in October ahead of thepre-Christmas shopping season.

"Shipments will start in August," Sharp's new president,Takashi Okuda, said at a press briefing in Tokyo on Thursdayafter the company released its latest quarterly earnings.

He declined to give a more specific date for shipmentsbeyond this month.

Apple is planning a major product launch on Sept 12, stokingspeculation that the world's most valuable technology companywill announce the sale of its redesigned iPhone. Sharp,identified as a supplier by Apple last year, is one of threecompanies expected to build the screens for the latest Appleoffering.

Sharp does not comment on its relationship with Apple, butthe screens set to start shipping in August are widely known tobe headed for the new iPhone.

The other two suppliers of the panels are LG Display Co Ltd and Japan Display Inc.

Apple is equipping the next iPhone with a larger screenafter Samsung Electronics unveiled its latest Galaxysmartphone with a 4.8-inch touch-screen.

Sources earlier told Reuters that the panels will be 4inches corner to corner -- 30 percent bigger than currentiPhones.

Samsung last month posted a record operating profit of $5.9billion for the quarter ended June, helped by sales of itslatest handset.

The iPhone screens will also be thinner than their previousincarnations with the use of so-called in-cell panels. The newtechnology embeds touch sensors into the liquid crystal display,eliminating the touch-screen layer found in current iPhones.

Samsung and Apple on Tuesday faced off at the start of ahigh-stakes patent trial, where Apple has accused Samsung ofstealing iPhone features like scrolling and multi-touch.